Cyta strengthens Cyprus' role as a regional data hub
Telecommunications provider Cyta has signed an agreement to acquire the RedMax Data Centre in the Latsia Industrial Area, marking a strategic investment aimed at expanding Cyprus’ digital infrastructure and strengthening the country’s position as a regional data hub.
The agreement also includes the expansion and upgrade of the facility, with development set to proceed in phases.
The first phase is expected to enter commercial operation in early 2027, while the completed project will become the largest privately owned data centre in Cyprus.
The investment represents the next major step in the development of Cyta’s data centre portfolio, significantly increasing the organisation’s ability to provide cloud services and equipment colocation at a larger scale to businesses, public sector bodies and international organisations.
The telecommunications provider explained that the new facility will substantially expand its capacity to host customers’ equipment and digital systems while offering access to modern, secure and reliable digital services.
The data centre has been designed in line with internationally recognised standards for security, reliability and high availability.
It will incorporate advanced physical security and cybersecurity systems, obtain the required ISO certifications and make use of renewable energy sources to cover part of its electricity requirements.
“The investment is the next significant step in the development of Cyta Data Centers,” the company said.
“With the new addition, Cyta is substantially strengthening its ability to provide cloud services and equipment hosting on a larger scale to businesses, public bodies and international organisations,” it added.
Cyta also said the investment “will reinforce Cyprus’ digital infrastructure” and “improve the country’s ability to serve regional and international data requirements“.
“Together with the company’s existing data centres and its international submarine cable network, the new investment is expected to further strengthen Cyprus’ role as a regional data hub while supporting the country’s technological and economic development,” the company added.Global data centre investment accelerates
Cyta’s latest investment comes at a time when global spending on data centres and artificial intelligence infrastructure is accelerating at an unprecedented pace, driven by soaring demand for cloud computing and AI processing capacity.
According to technology research firm Omdia, cumulative global investment in data centres is forecast to approach $1.6 trillion by 2030.
The firm also expects leading technology companies to collectively spend more than $600 billion on AI infrastructure capital expenditure in 2026 alone.
Omdia said this level of spending shows that the AI factory market has crossed “an irreversible threshold”, evolving into a new industrial model characterised by exceptionally high capital requirements, significant geopolitical importance and increasingly complex engineering challenges.
Elsewhere, research by McKinsey & Company points to an even larger investment requirement, estimating that global data centres will require $6.7 trillion by 2030 to keep pace with growing demand for computing power.
Of that total, the consultancy estimates $5.2 trillion will be needed for AI-ready data centres capable of handling advanced processing workloads, while $1.5 trillion will be invested in facilities supporting traditional information technology applications.
Meanwhile, PwC’s Global Infrastructure Outlook, published on April 28, 2026, forecasts that annual global infrastructure spending will increase from $4.4 trillion in 2024 to $6.9 trillion by 2050, resulting in cumulative investment of $151.1 trillion.
PwC expects annual investment in data centre buildings to more than double within three years, reaching $252 billion in 2027, reflecting the rapid expansion of digital infrastructure worldwide.
The report also projects that transport, power and digital infrastructure will increasingly converge into interconnected, digitally enabled systems designed to support artificial intelligence, electrification and growing urban populations.
PwC expects Asia-Pacific to account for more than half of global infrastructure investment through 2050, while Africa records the fastest growth and Europe and North America undergo a major cycle of infrastructure renewal.
Against this backdrop, Cyta’s investment reflects a broader international trend as governments and telecommunications providers expand digital infrastructure to meet rapidly growing demand for secure cloud services, AI computing capacity and regional data storage.
